5GN happened, page-37

Biggest risk to WCG now is they will get gobbled up before they have a change to execute. at 40c, this thing is 1.6x fy23 revenue, and on 25m projected EBITDA, thats about 6.5x ebitda.. Take out a very conservative 5m in overheads, 30m underlying EBITDA, with additional synergies to realise over time.... thats underlying 5.3x ebitda. This thing is accretive for any major IT/Telco at anything below $1 IMO... and opens up a great cross selling opportunity to +300k customers.

I like the idea of it getting to $1 per a few brokers reports is unlikely, it will be taken over before then - its now starting to get just enough size (in terms of revenue and EBITDA) to be worthwhile..

Might be a case of any potential acquirer of WCG is waiting for the CNW saga to play out a bit more - that would make it a bigger aquisiton, and even more value accretioon.

Share price drop IMO is driven by a couple of elements.

1. finally some volume in WCG, long term holders taking advantage of the opportunity.
2. corona news (all overdone by the media, great buying opportunity yesterday)
3. long term 5gN holders giving up or not understanding the combined entity value (there is some significant legacy 5gN "hatred" from the original 5GN takeover offer (17c ring a bell)...

Ultimately, Covid press of this week was a beat up and there is just overhang from the merger and frustrated holders of 5GN.

Put it in the bottom drawer (top up if you have some kahunas).

And - if you are a poster who has absolutely no idea, try and add some value to the thread or go and cry somewhere else where someone actually gives a toss.

GLTAH.